What is a Fair Cash offer on a House UK 2024?
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The prospect of selling your home to a cash buyer is incredibly appealing. This tends to mean that there are fewer contingencies and the entire process is a whole lot more efficient. Cash buyers are in a position of greater advantage and more often than not, if there are multiple offers on the table for a property, the cash buyer will have the upper hand. However, while cash buyers are indeed appealing, there are downsides - namely the fact that your buyer is likely to submit a lower offer than a mortgage buyer would.
Nevertheless, sellers are often happy to move forward with a lower cash offer in a bid to keep the process as speedy and uncomplicated as possible. The question is, how do you determine what a fair offer is? And how much below the market value should you be prepared to accept?
Are you looking to sell your home? As leading cash home buyers with an excellent rating, we offer an efficient property sale experience and to help make the process as easy as possible, we handle everything from start to completion - including funding solicitor costs. What’s more, we offer the flexibility to choose a completion date within a minimum of 7 days, absolutely free of charge and entirely hassle-free.
What is a fair cash offer?
Ultimately, a fair price is fairly subjective and largely comes down to the seller's aims & how much they’re prepared to budge on price. Some sellers have a clear figure in mind to which they will drop to, meanwhile others - usually those that want the property off their hands as soon as possible - are willing to consider slightly ‘cheekier’ offers in order to get things moving.
Why you should consider a cash offer from us
If you’re hoping to sell your home fast, you may be interested to hear a little bit more about us and what we do.
Irrespective of your circumstances, we are happy to buy any home, irrespective of its condition for cash. As well as taking care of everything in a timely manner, we’ll even cover all of the extra costs (solicitor fees included) and as cash house buyers UK, we will ensure that completion is done at a timescale to suit you.
Whether your home is fully renovated and ready for the next homeowner to simply hang their coat up, or there are a bunch of outstanding renovations and improvements, as home buyers, we are ready to purchase your home in as little as 7 days.
What makes us unique is that we identify the unique potential of every property and we always judge homes fairly based on their location and condition.
Why do estate agents want cash buyers only?
Whilst estate agents are often happy to deal with buyers who are planning to purchase property through a loan or mortgage, a cash buyer is often more desirable as they already have the money readily available to perform a cash purchase. As they have the money available, they can buy houses as long as the valuation and any home inspections look good. As they come with no onward chain, sellers will also often favour them as they reduce the risk of the sale falling through.
How do buyers determine a fair cash offer?
There are a number of factors that may determine the offer a cash house buyer is willing to make. For example:
The condition of the property
Cosmetic updates such as paint jobs and some fresh wallpaper here and there are to be expected when buying any home - after all, we all have different tastes. However, if a home is in desperate need of modernisation and there are a considerable number of renovations left outstanding, the buyer may make a substantially lower cash offer.
The property market in general
At times, we experience what is known as a ‘seller’s market’, and at other times, the market favours the buyer. If the property industry is in a period where the seller has the advantage and the number of properties available is low, even the most appealing cash buyers may consider bumping up their offer.
On the other hand, when there are lots of homes available but the number of prospective buyers is low (AKA: a buyer’s market), sellers are often left with little choice but to accept a lower offer. With their advantageous position, cash buyers could offer anything between 20%-25% less than the market asking price.
The prices of similar surrounding properties
If there are a number of similar homes nearby that have sold for much less than your proposed asking price, you may find that prospective buyers use this as their reason to submit a lower cash offer. It could be argued that you have overpriced your property, which is why it’s essential that you do your own research of the property market beforehand. Checking the HM Land Registry ‘sold house prices’ online is free and easy.
How long a property has been on the market
A home that has been sat on the market for a considerable amount of time often loses its appeal. Prospective buyers may wonder if there is something fundamentally ‘wrong’ with the property or, particularly if they’re a cash buyer, they may spot an opportunity to scoop the property at a much lower price.
Homes that have been on the market and have already been reduced at least once are particularly likely to receive low-ball offers from buyers.
Legal and/or physical issues with the property
The surveying process is in place to highlight these issues, which is why sellers in particular often become nervous at the time in which a survey is carried out on the property. If, during the conveyancing and survey process, there are some issues raised, this may end up impacting the amount a cash buyer is willing to offer.
Of course, the severity of the problem(s) raised will determine much of this and if the existing homeowner is happy to resolve the issue ahead of contracts being exchanged, the original agreed offer may go ahead as planned.
Is it best to accept a cash offer on a house?
Whether or not a home buying company is the route for you, will depend on your personal circumstances. If you can afford to wait on the open market for a buyer, then an estate agent may be the route for you. However, if you are seeking a fast house sale, or your property is not in the best condition then a cash buyer may be worth exploring. A cash offer will mean that the selling process is significantly sped up as there will be no lenders involved. A cash offer is also far less likely to fall through than an offer on the open market, as the buyer is not dependent on a loan or mortgage to make the sale.
How to get a fair cash offer from a prospective buyer
Cash house buyers may have the money available to buy a home outright, but if they feel that your home is worth less than the market value, the offer they submit will likely be less than what you have asked for.
Many cash buyers are looking for a property to invest in that will make them more money in the long term, and so they may be assessing their options. The likes of corporate/public bonds, a good savings account, the stock market and index funds are just a few of the other options that may be on the table. Ultimately, owning a home is expensive and on top of everything else, the cost of Stamp Duty must also be taken into consideration.
With the ease of a cash sale as a firm advantage, sellers can expect to receive offers between 5-10% lower than their original asking price. However, the unique circumstances of a property, together with the market in general mean that buyers frequently submit cash offers between 15-30% less.
If you are looking to get a fair cash offer on house, then look no further. It has never been easier to secure a no-obligation cash offer on a house! Simply enter your postcode below, select your property and one of our property experts will be in touch shortly to offer you a no-obligation cash offer.
We are The Property Buying Company, a sell your house for cash company, who are able to purchase your property in a timescale that suits you. As a genuine cash buyer, we have our own cash reserves, meaning we can purchase your property as soon as you wish, whether that is 3 months down the line or in as little as 7 days.
As a genuine cash buying company with over 50 years combined experience, you know that you are in safe hands when you sell through us. We are proud to be members of both The Property Ombudsman and The National Association of Property Buyers, meaning we keep you at the heart of the selling process. But, don't just take our word for it, you can also check out our Trustpilot with over 1,000 reviews rating us as excellent.
Our process is completely fee free, meaning you can say goodbye to expensive estate agent and conveyancing fees. All we require is a bit of your time to discuss your property and your selling motivations. So, if you are ready to get cash offer on house and sell your house fast and for free, simply click the box below...
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